General Motors Co. made a decision to recall another 2.7 million vehicles in its home market. The recall was undertaken by the company in order to fix a potential problem with brake lights and some other issues. This last withdrawal increased the total number of vehicles General Motors called back in the U.S. to 11.2 million, which is the largest number of car and truck units ever recalled by the company. The overall number of vehicles called back by the company globally amounts to 12.8 million.
The current Vice President of General Motors – Mr. Jeff Boyer shared in an interview, which was cited by Bloomberg: “The recent ignition recall has lead us to reexamine really every part of our business to make sure our customers and their safety are at the heart of everything we do. As part of that we’ve made some changes in our overall recall process and these changes, I’m sure that you’ve seen, have resulted in a much larger than normal number of GM vehicle recalls since the beginning of the year.”
The latest withdrawal includes a total of 2.4 million Chevrolet Malibus units manufactured in the period between 2004 and 2012, Malibu Maxx models, built from 2004 to 2007, Pontiac G6 units, made from 2005 to 2010 and Saturn Auras vehicles manufactured from 2007 to 2010.
Some of the vehicles were called back due to potentially faulty brake light wiring, while others were recalled because of some problems with their headlamps and a defect that might affect their stopping distance.
General Motors Co. and its Chief Executive Officer Mrs. Mary Barra have been already facing hard time dealing with the withdrawal of 2.59 million small cars due to an ignition switch defect, which is considered to be related to 13 death cases. The problem caused the need of some reorganization of the company, which is exactly why Mrs. Barra hired additional staff for internal investigation, focused on reconstruction of the engineering department and implemented a new safety program.
General Motors Co. was 1.66% down to close at 34.36 dollars per share yesterday, marking a one-year change of +6.34%. According to the information published on CNN Money, the 18 analysts offering 12-month price forecasts for General Motors Co. have a median target of 43.50, with a high estimate of 50.00 and a low estimate of 32.00. The median estimate represents a +26.60% increase from the last price of 34.36.
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